Analysis-China’s soybean glut could defeat US export hopes after trade thaw

By Naveen Thukral and Ella Cao

SINGAPORE/BEIJING (Reuters) -China is grappling with a glut of soybeans after months of record imports, curbing prospects for U.S. exports despite a recent trade truce that Washington said includes a pledge by Beijing to resume heavy purchases.

Traders and analysts warn that vast stockpiles at ports and in state reserves, coupled with weak crush margins, limit Beijing’s appetite for further purchases.

“State firms may be waiting for margins to recover before making large-scale purchases,” said Johnny Xiang, founder of Beijing-based AgRadar Consulting. “Even with tariff waivers, margins remain negative and Brazilian beans are still cheaper.”

After President Donald Trump met Chinese leader Xi Jinping last month officials in Washington said China had agreed